2. Carry out a ‘three-horizons’ analysis (Section 1.2.

1) of Airbnb, in terms of both

existing activities and possible future ones. How might this analysis affect its future
strategic direction?
- Horizon 1
A simple website with pictures of loft-turned-lodging space – complete with three air
mattresses on the floor and the promise of a home-cooked breakfast in the morning.
Airbnb provides an online marketplace for local property owners to provide in-house
guest experiences for a specific time in their private house/ apartment almost operating
like a hotel service but with a home-feel experience creating an engagement community.
- Horizon 2
The company introduced Airbnb Social Connections, which leverages users’ social
graphs via Facebook Connect. This shows whether friends have stayed with the host or
are friends with the host and it allows guests to search for hosts based on other
characteristics, like alma mater.
They created compelling experiences like a ‘local’ through a collaborative sense of
community by integrating with other apps like Easy Cars and Girl Meet Dress and also
introduced Airbnb Neighbourhoods and local lounges, partnering with local coffee shops
that can offer free wifi, a comfortable setting, and local guidebooks. They also acquired a
small start-up that connects guests with locals who can answer their questions. They also
offer cleaning services.
The company has also created an online community through OpenHomes which
provides temporary housing for individuals affected by disaster, for medical relief. The
company has also created an online community through OpenHomes which provides
temporary housing for individuals affected by Disaster, for medical relief
- Horizon 3
Airbnb is planning for a rebranding strategy from renting property space at an
affordable price to a lifestyle brand where the community connects with a sense of
belonging to the brand.
 - Strategic direction: Airbnb is slowly moving towards becoming an all-in-one
travel platform.

3. Using the headings of environments, strategic capability, strategic purpose, and

culture seen in Section 1.3.1, identify key positioning issues for Airbnb and consider
their relative importance.
- Environment
Airbnb was dangerous and unsafe in terms of health and safety and quality assurance
as it was unregulated. Although one must have a permit to rent for under 30 days, San
Francisco residents were still illegally listing personal homes and apartments. Similar
problems were being experienced in New York where an ‘illegal hotel law’ was passed
preventing people from subletting apartments for less than 29 days.
- Strategic Capability
Airbnb’s strategic capability is that it has created its business model on a shared
network between the host and guest providing competitive pricing and easy accessibility
all around the world and giving economic benefits to the host. This has created a
community network of 1.5 million listings in 34,000 cities in 192 countries, with 40
million total guests in 2016.
- Strategic Purpose
Through a sense of community and belongingness, they aim to create a lifestyle brand
by creating a relationship of personal engagement with the brand.
- Culture
The leadership of Airbnb has given prime importance by nourishing the culture
through openness and dialogue by introducing the notion of ‘elephants, dead fish, and
vomit’. This has created a more collaborative tone as employees could speak up and
share their ideas under people-centric leadership, and by also having annual employee
meetings, conferences, and birth celebrations and discussing the future strategies in a
‘come alive’ atmosphere.
 4. Following on from the previous questions and making use of Section 1.3.2,
what alternative strategies do you see for Airbnb?
- Enhanced Digital Strategy
Airbnb should adopt a diverse digital presence and communication on all social
platforms with integrated customer service support through all social media channels like
Instagram stories, tweets, emergency support, etc.
- Affiliating with an airline
Affiliating with an airline to provide complete holiday packages is an option that the
company can look into. Setting and monitoring quality standards for the accommodations
can certainly improve customer experience.